Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 173,869,000, a decrease of 20% compared to HKD 217,507,000 for the same period in 2021[9] - The company reported a loss of HKD 6,935,000 for the six months ended September 30, 2022, compared to a loss of HKD 467,000 for the same period in 2021[9] - The group reported a net loss of HKD 6,935,000 for the six months ended September 30, 2022, compared to a loss of HKD 467,000 in the same period of 2021[40] - The company recorded a total comprehensive loss of HKD 7,592,000 for the six months ended September 30, 2022, compared to a loss of HKD 277,000 in the same period of the previous year[14] - Total revenue decreased by approximately HKD 43.6 million or 20.1% to about HKD 173.9 million for the six months ended September 30, 2022, compared to approximately HKD 217.5 million for the same period in 2021[61] Cost Management - Employee benefit expenses decreased by 13% to HKD 23,026,000 from HKD 26,656,000 year-on-year[9] - Transportation costs decreased by 31% to HKD 67,923,000 from HKD 98,746,000 year-on-year[9] - The total employee costs for the six months ended September 30, 2022, were HKD 23,026,000, a decrease from HKD 26,836,000 in the same period of 2021[36] - Warehousing operating costs decreased by approximately HKD 1.1 million or 7.7% to about HKD 12.9 million for the six months ended September 30, 2022, from approximately HKD 14.0 million for the same period in 2021[71] - Other expenses decreased by approximately HKD 1.6 million or 34.3% to about HKD 3.1 million for the six months ended September 30, 2022, from approximately HKD 4.7 million for the same period in 2021[72] Assets and Liabilities - Total assets decreased to HKD 87,908,000 from HKD 106,881,000 as of March 31, 2022[11] - The company’s current liabilities increased to HKD 96,523,000 from HKD 103,831,000 as of March 31, 2022[11] - The net current liabilities position was HKD 8,615,000 as of September 30, 2022, compared to a net current assets position of HKD 3,050,000 as of March 31, 2022[11] - As of September 30, 2022, the company's non-current liabilities increased to HKD 20,540,000 from HKD 19,968,000 as of March 31, 2022, representing a growth of approximately 2.86%[12] - The net asset value decreased to HKD 47,068,000 from HKD 54,660,000, indicating a decline of about 13.9%[12] Cash Flow - The company reported a net cash inflow from operating activities of HKD 6,444,000 for the six months ended September 30, 2022, down from HKD 11,121,000 in the same period of 2021, a decrease of approximately 42.5%[16] - Cash and cash equivalents at the end of the period were HKD 8,170,000, a significant decrease from HKD 29,581,000 at the end of the previous year, reflecting a decline of about 72.4%[16] - Cash and bank balances as of September 30, 2022, totaled approximately HKD 8.2 million, down from HKD 21.7 million as of March 31, 2022[84] Revenue Breakdown - Revenue from air cargo terminal operations, transportation services, and warehousing and other value-added services decreased significantly, with air cargo terminal operations revenue dropping from HKD 50,381,000 in 2021 to HKD 49,081,000 in 2022 for the six-month period[24] - Revenue from Hong Kong operations for the six months ended September 30, 2022, was HKD 169,017,000, down 20.5% from HKD 212,630,000 in 2021[28] - Major customers contributing over 10% of the group's revenue included Customer A with HKD 70,874,000 and Customer B with HKD 52,063,000 for the six months ended September 30, 2022, both showing declines from the previous year[31] Future Outlook - The company has not provided specific guidance for future performance in the report[9] - There is no mention of new products, technologies, or market expansion strategies in the interim report[9] - The company aims to leverage existing industry knowledge to expand core strengths and explore more business opportunities in the future[60] Shareholder Information - 3C Holding Limited holds 330,120,000 shares, representing approximately 68.8% of the company's issued share capital[98] - Kwan Cheng Limited owns about 6.2% of the company's total issued share capital, equating to 29,880,000 shares[99] - The group did not declare any dividends for the six months ended September 30, 2022[37] - The company did not declare or recommend any dividends for the six months ended September 30, 2022, consistent with the same period in 2021[92] Compliance and Governance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2022, ensuring compliance with applicable accounting standards and GEM Listing Rules[113] - The report complies with all requirements set forth by the GEM listing rules[115] - The mid-term report for the fiscal year 2022/2023 is available on the company's website and the Hong Kong Stock Exchange website[115] - The chairman of the board, Mr. Chan Lit Pong, presented the mid-term report on November 14, 2022[116]

Financial Performance - Revenue for the three months ended June 30, 2022, was HKD 91,752,000, a decrease of 10.3% compared to HKD 102,046,000 for the same period in 2021[7] - The company reported a net loss of HKD 2,550,000 for the three months ended June 30, 2022, compared to a net loss of HKD 1,311,000 for the same period in 2021, representing an increase in loss of 94.5%[7] - Total comprehensive loss for the period was HKD 3,179,000, compared to HKD 1,056,000 for the same period in 2021, indicating a significant increase in comprehensive loss[7] - Basic loss per share for the three months ended June 30, 2022, was HKD 0.53, compared to HKD 0.27 for the same period in 2021[7] - The company recorded a loss attributable to owners of the company of HKD 2.55 million for the three months ended June 30, 2022, compared to a loss of HKD 1.31 million for the same period in 2021[19] - The group recorded a net loss of approximately HKD 2.6 million for the three months ended June 30, 2022, compared to a net loss of about HKD 1.3 million for the same period in 2021, primarily due to restrictions on cross-border transportation services[36] Revenue Breakdown - Total revenue for the three months ended June 30, 2022, was approximately HKD 91.8 million, a decrease of about HKD 10.3 million or 10.1% from approximately HKD 102.0 million for the same period in 2021[25] - Revenue from ancillary delivery services decreased significantly by approximately HKD 7.6 million or 43.7%, from approximately HKD 17.4 million in the three months ended June 30, 2021, to approximately HKD 9.8 million in the same period of 2022[25] Cost Management - Employee benefit expenses decreased to HKD 11,516,000 from HKD 13,460,000, a reduction of 14.5% year-on-year[7] - Transportation costs decreased to HKD 36,774,000 from HKD 44,802,000, a decline of 18% compared to the previous year[7] - Employee benefits expenses decreased by approximately HKD 1.9 million or 14.4% to about HKD 11.5 million for the three months ended June 30, 2022, primarily due to government subsidies under the employment support scheme[28] - Dispatch labor costs increased by approximately HKD 1.3 million or 4.2% to about HKD 31.7 million for the three months ended June 30, 2022, mainly due to rising local labor costs[29] - Depreciation of property, plant, and equipment increased by approximately HKD 0.3 million or 5.4% to about HKD 5.4 million for the three months ended June 30, 2022, in line with increased leasing liabilities[30] - Transportation costs decreased by approximately HKD 8.0 million or 17.9% to about HKD 36.8 million for the three months ended June 30, 2022, despite rising fuel prices[31] - Warehousing operating costs slightly decreased by approximately HKD 0.2 million or 2.7% to about HKD 6.5 million for the three months ended June 30, 2022, benefiting from cost control measures[32] - Other expenses decreased by approximately HKD 0.8 million or 28.6% to about HKD 2.1 million for the three months ended June 30, 2022, mainly due to reduced professional fees[33] - The financing cost remained stable at approximately HKD 0.7 million for the three months ended June 30, 2022, compared to HKD 0.5 million for the same period in 2021[34] Operational Challenges - The tightening of COVID-19 control measures in China has severely impacted the company's operations and business, leading to a reduction in cross-border transportation services[23] - The company continues to focus on cost management strategies to mitigate losses and improve operational efficiency[9] Shareholder and Governance Information - As of June 30, 2022, the major shareholder 3C Holding Limited held approximately 68.8% of the company's issued share capital[40] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2022[44] - No significant acquisitions or disposals were made by the group during the three months ended June 30, 2022[53] - The company did not declare or pay any dividends during the three months ended June 30, 2022[52] - The audit committee has reviewed the unaudited financial results for the three months ended June 30, 2022, and confirmed compliance with applicable accounting standards and GEM listing rules[51] - The company has adopted a code of conduct for securities transactions by directors in accordance with GEM listing rules[47] - There were no known conflicts of interest involving directors or major shareholders during the three months ended June 30, 2022[46] - The company has appointed a compliance advisor effective from September 1, 2020, with no reported interests conflicting with the company[50] - The company has applied the principles of the corporate governance code as per GEM listing rules during the three months ended June 30, 2022[49] - No material events requiring disclosure occurred after the three months ended June 30, 2022[54] - The first quarter report was published on the company's website and complies with GEM listing rules[55] - The board of directors includes both executive and independent non-executive members, ensuring governance and oversight[56] Accounting Standards - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2022, with no significant impact on accounting policies or financial statements reported[3]

Financial Performance - The company recorded a net loss of approximately HKD 18.3 million for the fiscal year ending March 31, 2022, compared to a net loss of HKD 7.7 million for the previous fiscal year, representing an increase in net loss of 138.96%[8]. - The increase in net loss was primarily attributed to a decrease in revenue during the fourth quarter due to the fifth wave of COVID-19 in Hong Kong and the absence of government subsidies received in the previous fiscal year amounting to approximately HKD 6.4 million[8]. - Despite the challenges posed by COVID-19, the company still achieved overall revenue growth during the fiscal year[9]. - The company's total revenue increased by approximately HKD 34.5 million or 9.1% from HKD 378.4 million for the year ended March 31, 2021, to HKD 412.9 million for the year ended March 31, 2022[17]. - Revenue from warehousing and other value-added services rose by approximately HKD 25.9 million or 23.6% to approximately HKD 135.6 million for the year ended March 31, 2022, compared to approximately HKD 109.7 million for the previous year[17]. - The net profit margin for the fiscal year ending March 31, 2022, was approximately -4.4%, compared to -2.0% in 2021[143]. - The return on equity for the same period was approximately -33.5%, down from -10.6% in 2021[143]. - The net cash generated from operating activities was approximately HKD 10.4 million, a decrease from HKD 14.6 million in 2021[143]. - Cash and cash equivalents stood at approximately HKD 21.7 million, down from HKD 23.7 million in 2021[143]. Operational Developments - The company plans to continue leveraging its warehouse at the Asia Container Logistics Center as a growth engine, providing storage services and value-added services such as X-ray inspection[9]. - The logistics capabilities have been enhanced with the establishment of the air cargo consolidation warehouse at the Wo Hing Logistics Center, allowing the company to offer one-stop logistics services[14]. - The tightening of COVID-19 control measures in mainland China has restricted normal cross-border transportation services, leading to a shift from land transport to sea or air transport for some logistics arrangements[14]. - The company aims to capitalize on the rising demand for small parcel delivery and postal services driven by the e-commerce boom triggered by COVID-19[14]. - The market remains challenging, and it is expected that market sentiment will take a considerable time to fully recover[14]. Employee and Cost Management - Employee benefits expenses increased by approximately HKD 9.5 million or 20.1% to approximately HKD 56.7 million for the year ended March 31, 2022, primarily due to an increase in average wages and additional staffing for warehousing and value-added services[20]. - Transportation costs increased by approximately HKD 15.0 million or 8.6% to approximately HKD 188.5 million for the year ended March 31, 2022, primarily due to increased service fees paid to external transportation service providers[25]. - Warehousing operating costs rose by approximately HKD 5.4 million or 22.3% to approximately HKD 29.6 million for the year ended March 31, 2022, driven by business growth in warehousing and other value-added services[26]. - Depreciation of property, plant, and equipment increased by approximately HKD 3.1 million or 18.2% to approximately HKD 20.1 million for the year ended March 31, 2022, due to increased depreciation from new office and forklift usage rights[24]. Governance and Management - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[77]. - The company has complied with all corporate governance code provisions during the reporting period, demonstrating adherence to GEM listing rules[74]. - A total of five board meetings were held during the year ending March 31, 2022, with full attendance from executive and non-executive directors[80]. - The company has a strong management team with over 27 years of experience in the logistics industry, enhancing operational oversight and employee training[69]. - The company has appointed at least three independent non-executive directors, exceeding one-third of the board, to ensure independence and proper governance[77]. - The audit committee, nomination committee, and remuneration committee have been established to oversee specific areas of governance[74]. - The company has maintained a robust internal control system, which is crucial for balancing the interests of shareholders, customers, and employees[74]. - The management team is responsible for daily operations and logistics arrangements in both Hong Kong and China, reflecting a strong operational focus[70]. Shareholder and Financial Policies - The board does not intend to declare a final dividend for the year ended March 31, 2022, consistent with the previous year[49]. - The company has adopted a dividend policy to guide the board in determining whether to declare and pay dividends, considering the group's actual and expected financial performance[108]. - The board has the discretion to determine the declaration and payment of dividends, with no predetermined dividend payout ratio established[110]. - The company retains the right to review and amend the dividend policy at any time without creating a binding commitment to pay dividends[110]. - The external auditor's fee for audit services for the year ended March 31, 2022, was approximately HKD 630,000, with no non-audit services provided[113]. - The company has established a shareholder communication policy to enhance effective communication with shareholders and potential investors, which was deemed satisfactory for the year ended March 31, 2022[125]. Risk Management and Compliance - The board of directors is responsible for maintaining effective risk management and internal control systems, which were reviewed and deemed adequate for the year ended March 31, 2022[115]. - The company has confirmed compliance with non-competition agreements by its controlling shareholders since the listing date[186]. - The independent non-executive directors confirmed their independence in accordance with GEM Listing Rules[174]. - The company has not established any arrangements that would allow directors to benefit from purchasing shares or debt securities of the company[181]. - The company has appointed a compliance advisor, Zhi Fu Financing Limited, effective from September 1, 2020[190]. Corporate Social Responsibility - Charitable donations made during the fiscal year amounted to HKD 380,000, an increase from HKD 150,000 in 2021[150]. - The company has implemented green office practices to reduce energy and natural resource consumption, including the use of energy-saving lighting and eco-friendly paper[199].

Revenue Performance - Revenue for the three months ended December 31, 2021, was HKD 113,903,000, an increase of 4% compared to HKD 109,102,000 for the same period in 2020[6] - Revenue for the nine months ended December 31, 2021, reached HKD 331,410,000, representing a 17.7% increase from HKD 281,537,000 in the previous year[6] - For the nine months ended December 31, 2021, total revenue reached HKD 331,410,000, an increase of 17.7% compared to HKD 281,537,000 for the same period in 2020[16] - Total revenue increased by approximately HKD 49.9 million or 17.7% to about HKD 331.4 million for the nine months ended December 31, 2021, compared to approximately HKD 281.5 million for the same period in 2020[30] Profit and Loss - The company reported a net profit of HKD 348,000 for the three months ended December 31, 2021, compared to a profit of HKD 2,902,000 in the same period of 2020, indicating a significant decline[7] - For the nine months ended December 31, 2021, the company recorded a net loss of HKD 119,000, compared to a loss of HKD 678,000 in the previous year[7] - The company reported a net loss of HKD 119,000 for the nine months ended December 31, 2021, compared to a loss of HKD 678,000 in the same period of 2020[23] - Basic earnings per share for the nine months ended December 31, 2021, was a loss of HKD 0.000248, compared to a loss of HKD 0.00143 for the same period in 2020[23] - Net loss decreased by approximately HKD 8.1 million or 98.5% to about HKD 0.1 million for the nine months ended December 31, 2021, compared to a loss of approximately HKD 8.2 million for the same period in 2020[43] Expenses - Employee benefit expenses increased to HKD 40,470,000 for the nine months ended December 31, 2021, up from HKD 32,042,000 in the same period of 2020, reflecting a 26.5% rise[6] - Employee benefit expenses increased by approximately HKD 8.4 million or 26.3% to about HKD 40.5 million for the nine months ended December 31, 2021, compared to approximately HKD 32.0 million for the same period in 2020[34] - The company incurred transportation costs of HKD 154,524,000 for the nine months ended December 31, 2021, compared to HKD 130,648,000 in the previous year, marking an increase of 18.2%[6] - Transportation costs rose by approximately HKD 23.9 million or 18.3% to about HKD 154.5 million for the nine months ended December 31, 2021, compared to approximately HKD 130.6 million for the same period in 2020[38] Revenue by Segment - Air cargo station operation services generated revenue of HKD 75,933,000 for the nine months ended December 31, 2021, slightly up from HKD 75,254,000 in 2020[16] - Transportation services revenue decreased to HKD 92,233,000 for the nine months ended December 31, 2021, compared to HKD 86,881,000 in 2020, reflecting a decline of 6.5%[16] - Warehousing and other value-added services saw significant growth, with revenue increasing to HKD 111,148,000 for the nine months ended December 31, 2021, up from HKD 72,558,000 in 2020, representing a growth of 53.0%[16] - Revenue from warehousing and other value-added services rose by approximately HKD 38.6 million or 53.2% to about HKD 111.1 million for the nine months ended December 31, 2021, compared to approximately HKD 72.6 million for the same period in 2020[30] Comprehensive Income - Other comprehensive income for the three months ended December 31, 2021, included a foreign exchange gain of HKD 883,000, compared to no gain in the same period of 2020[7] - The total comprehensive income for the nine months ended December 31, 2021, was HKD 765,000, compared to a total comprehensive loss of HKD 675,000 in the previous year[7] Future Plans and Strategies - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency and service offerings[6] - The company plans to continue observing the development of the COVID-19 pandemic and seek higher-margin business opportunities while implementing prudent cost control measures[28] - The company aims to enhance its competitiveness in the logistics industry through the utilization of existing industry knowledge and strategic cost management[28] Shareholder Information - The company’s major shareholder is 3C Holding Limited, which is owned by Mr. Chan Lit Pong and Mr. Chan Yu, holding 95% and 5% respectively[10] - The company holds 68.8% of its shares through 3C Holding Limited, which is controlled by Mr. Chan Lit Pong[45] - Mr. Choi Wing Hang holds 6.2% of the shares through Kin Cheng Limited, which he fully owns[45] Corporate Governance - The company has complied with all applicable corporate governance codes as of December 31, 2021[54] - The audit committee has reviewed the unaudited financial results for the nine months ended December 31, 2021, and confirmed compliance with applicable accounting standards and GEM listing rules[57] Dividends and Securities - No dividends were declared or proposed for the nine months ended December 31, 2021, consistent with the previous year[25] - No dividends were declared or paid by the company or any of its subsidiaries for the nine months ended December 31, 2021[58] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2021[50] - The company has adopted a share option scheme as of March 27, 2020, but no options have been granted or exercised as of the report date[49] Utilization of Proceeds - The net proceeds from the listing amount to approximately HKD 17.8 million after deducting underwriting commissions and other estimated expenses[44] - As of December 31, 2021, the total amount utilized from the net proceeds is HKD 7.808 million, leaving an unutilized amount of HKD 1.123 million[44] - The company plans to fully utilize the unutilized net proceeds by March 31, 2022[44] - The company has allocated funds for expanding and upgrading its transportation fleet, with HKD 2.988 million utilized out of HKD 3.325 million allocated[44] Events and Compliance - There were no significant acquisitions or disposals of subsidiaries or associates during the nine months ended December 31, 2021[59] - The board is not aware of any significant events that require disclosure after December 31, 2021, up to the date of this report[61] - The third quarter report is available on the company's website and complies with all GEM listing rule requirements[62]

Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 217,507,000, representing an increase of 26.2% compared to HKD 172,435,000 for the same period in 2020[10] - The company reported a net profit of HKD 844,000 for the six months ended September 30, 2021, compared to a net loss of HKD 3,580,000 for the same period in 2020[10] - The company reported a basic earnings per share of HKD 0.18 for the six months ended September 30, 2021, compared to a loss per share of HKD 0.76 for the same period in 2020[10] - For the six months ended September 30, 2021, total revenue reached HKD 217,507,000, a 26.1% increase from HKD 172,435,000 in the same period of 2020[27] - The company reported a loss of HKD 467,000 for the six months ended September 30, 2021, compared to a loss of HKD 3,580,000 in the same period of 2020[16] - The company reported a net loss of HKD 468,000 for the six months ended September 30, 2021, compared to a net loss of HKD 3,580,000 for the same period in 2020[42] - Net loss decreased to approximately HKD 0.5 million for the six months ended September 30, 2021, from a net loss of approximately HKD 3.6 million for the same period in 2020[75] Revenue Breakdown - Revenue from Hong Kong for the six months ended September 30, 2021, was HKD 212,630,000, up 31.5% from HKD 161,675,000 in 2020[31] - Revenue from China for the six months ended September 30, 2021, was HKD 4,877,000, a decrease of 54.6% from HKD 10,760,000 in 2020[31] - The logistics services segment generated revenue of HKD 60,418,000 for transportation services, up from HKD 53,606,000 in the previous year, reflecting a growth of 10.6%[27] - The warehousing and other value-added services segment saw revenue increase to HKD 71,977,000, a significant rise from HKD 38,685,000, marking an increase of 86.1%[27] - Revenue from warehousing and other value-added services rose by approximately HKD 33.3 million or 86.1% to about HKD 72.0 million for the six months ended September 30, 2021, compared to approximately HKD 38.7 million for the same period in 2020[62] Expenses and Costs - Employee benefit expenses increased to HKD 26,656,000, up 26.5% from HKD 21,059,000 in the previous year[10] - Total employee costs for the six months ended September 30, 2021, were HKD 26,836,000, an increase of 27.5% from HKD 21,059,000 in 2020[39] - Transportation costs rose to HKD 98,746,000, an increase of 24.1% from HKD 79,554,000 in the same period last year[10] - Transportation costs rose by approximately HKD 19.2 million or 24.1% to about HKD 98.7 million for the six months ended September 30, 2021, compared to approximately HKD 79.6 million for the same period in 2020[71] Assets and Liabilities - Trade and other receivables as of September 30, 2021, amounted to HKD 79,432,000, up from HKD 74,207,000 as of March 31, 2021[12] - The company's total assets as of September 30, 2021, were HKD 209,011,000, compared to HKD 192,357,000 as of March 31, 2021[12] - The company’s cash and cash equivalents increased to HKD 29,581,000 from HKD 23,684,000 as of March 31, 2021[12] - Non-current liabilities decreased to HKD 20,018,000 as of September 30, 2021, down from HKD 22,921,000 as of March 31, 2021[13] - The company's total equity as of September 30, 2021, was HKD 72,347,000, slightly down from HKD 72,624,000 as of March 31, 2021[13] - The total amount of bank loans increased to HKD 52,500,000 as of September 30, 2021, compared to HKD 34,000,000 as of March 31, 2021, reflecting a growth of 54.4%[53] - The asset-liability ratio increased to approximately 110.9% as of September 30, 2021, from approximately 96.9% as of March 31, 2021, primarily due to increased bank borrowings[79] Cash Flow - The operating cash flow for the six months ended September 30, 2021, was HKD 11,121,000, compared to a cash outflow of HKD 16,219,000 in the previous year[18] - The net cash and cash equivalents at the end of the period increased to HKD 29,581,000 from HKD 25,969,000 year-over-year[18] - The financing activities generated a net cash inflow of HKD 9,795,000 for the six months ended September 30, 2021, compared to HKD 32,575,000 in the previous year[18] Corporate Governance - The company has complied with all provisions of the corporate governance code during the reporting period[111] - The board of directors is composed of experienced individuals, including three independent non-executive directors, ensuring a balance of power and responsibility[111] - The audit committee, established on March 23, 2020, reviewed the unaudited consolidated financial statements for the six months ended September 30, 2021[114] Future Plans and Developments - The company plans to continue expanding its logistics services and exploring new market opportunities in the upcoming periods[10] - The company aims to explore higher-margin business opportunities while maintaining prudent cost control measures to enhance competitiveness in the logistics sector[61] - The company has enhanced its logistics capabilities with new warehouses at the Hong Kong logistics hub, responding to strong demand for cargo security services[61] - The company secured new contracts with a major client for the next three years, enhancing its role in the logistics industry[61] Shareholder Information - The board of directors holds significant shares, with Mr. Chan holding approximately 68.8% and Mr. Choi holding approximately 6.2% of the issued share capital[98] - 3C Holding Limited holds 330,120,000 shares, representing approximately 68.8% of the company's issued share capital[101] - Kwan Cheng Limited owns about 6.2% of the company's total issued share capital, equating to 29,880,000 shares[101] - No share options have been granted under the company's share option scheme since its adoption[104] Miscellaneous - The company did not declare any dividends for the six months ended September 30, 2021[40] - The group did not incur any significant capital commitments as of September 30, 2021, compared to approximately HKD 0.6 million for the purchase of transportation fleet as of March 31, 2021[86] - The group has purchased 11 heavy-duty trucks to meet operational needs, falling short of the target of 18 vehicles as outlined in the prospectus[92] - The group has recruited 32 operators to expand its warehousing operations, exceeding the target of 12 operators[92] - The group has invested in multiple IT systems, including logistics order management and warehouse management systems, all of which are operational or in trial phases[92] - The unutilized net proceeds as of September 30, 2021, were deposited in interest-bearing accounts at licensed banks in Hong Kong[94] - No significant events requiring disclosure occurred after September 30, 2021, up to the report date[115] - The mid-term report is available on the company's website and complies with GEM listing rules[116]

Financial Performance - Revenue for the three months ended June 30, 2021, was HKD 102,046,000, representing a 27.5% increase from HKD 80,005,000 in the same period of 2020[6] - The company reported a loss before tax of HKD 1,311,000 for the quarter, an improvement from a loss of HKD 1,908,000 in the previous year, indicating a reduction in losses by approximately 31.3%[6] - The company recorded a total comprehensive loss of HKD 1,056,000 for the quarter, compared to HKD 1,907,000 in the same period last year, showing a decrease in comprehensive losses by 44.7%[6] - The basic loss per share improved to HKD 0.27 from HKD 0.41, indicating a 34.1% reduction in loss per share[6] - The net loss for the three months ended June 30, 2021, was approximately HKD 1.3 million, a decrease from a net loss of approximately HKD 1.9 million for the same period in 2020[38] Revenue Sources - Revenue from warehousing and other value-added services rose by approximately HKD 18.2 million or 128.4% to approximately HKD 32.3 million, driven by the operational expansion of the air cargo container warehouse and new warehouse at the Asia Container Logistics Center[25] - Total revenue for the three months ended June 30, 2021, increased by approximately HKD 22.0 million or 27.5% to approximately HKD 102.0 million compared to HKD 80.0 million for the same period in 2020[25] Cost Management - Employee benefit expenses increased to HKD 13,460,000, up from HKD 9,746,000, reflecting a rise of 38.0% year-on-year[6] - Transportation costs rose to HKD 44,802,000, compared to HKD 36,109,000 in the previous year, marking an increase of 24.2%[6] - The financial report indicates that the company is actively managing its costs, particularly in labor and transportation, to improve overall financial performance[6] - Dispatch labor costs rose by approximately HKD 2.3 million or 8.1% to about HKD 30.4 million for the three months ended June 30, 2021, from approximately HKD 28.2 million for the same period in 2020[30] - Depreciation of property, plant, and equipment increased by approximately HKD 1.6 million or 43.2% to about HKD 5.1 million for the three months ended June 30, 2021, compared to approximately HKD 3.6 million for the same period in 2020[31] - Warehousing operating costs surged by approximately HKD 3.1 million or 83.6% to about HKD 6.7 million for the three months ended June 30, 2021, compared to approximately HKD 3.6 million for the same period in 2020[33] - Other expenses increased by approximately HKD 1.0 million or 54.0% to about HKD 2.9 million for the three months ended June 30, 2021, from approximately HKD 1.9 million for the same period in 2020[35] Equity and Shareholder Information - The company’s total equity as of June 30, 2021, was HKD 71,568,000, a decrease from HKD 77,891,000 at the end of the previous period[7] - As of June 30, 2021, Mr. Chan had a 68.8% stake in the company, while Mr. Choi held a 6.2% stake[42] - 3C Holding Limited holds 330,120,000 shares, representing approximately 68.8% of the company's issued share capital[44] - The weighted average number of ordinary shares used to calculate basic loss per share increased to 480,000,000 in 2021 from 460,219,780 in 2020[19] Business Strategy and Opportunities - The company aims to expand its air cargo station operations and logistics services in Hong Kong and China, focusing on enhancing value-added services[9] - The company continues to seek new business opportunities and has signed a new contract with a major client for the next three years, enhancing its role in the logistics industry[23] - The company is focused on expanding its core strengths and exploring higher-margin business opportunities while maintaining prudent cost control measures[23] Compliance and Governance - The audit committee reviewed the unaudited financial results for the three months ended June 30, 2021, and confirmed compliance with applicable accounting standards[54] - The company confirmed adherence to the corporate governance code as per GEM Listing Rules during the reporting period[50] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2021, with no significant impact on its accounting policies or financial statements[13] Other Information - No dividends were declared or proposed for the three months ended June 30, 2021, consistent with the previous year[21] - The company did not grant, lapse, exercise, or cancel any share options under the share option scheme as of the report date[45] - No significant contracts involving directors and the company or its subsidiaries were reported during the three months ended June 30, 2021[47] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended June 30, 2021[56] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended June 30, 2021[46] - The company has appointed a new compliance advisor effective September 1, 2020, following the termination of the previous advisor[51] - No major events requiring disclosure occurred after June 30, 2021, up to the report date[57] - Other income decreased by approximately HKD 1.1 million or 63.9% to approximately HKD 0.6 million for the three months ended June 30, 2021, primarily due to the absence of one-time subsidies related to COVID-19[26]

COVID-19 Impact - The company faced unprecedented challenges due to COVID-19, impacting its operations and financial performance during the fiscal year ending March 31, 2021[11] - The company will closely monitor the developments of COVID-19 and its potential impact on future financial performance[12] - The company is positioned to capitalize on the rising demand for small parcel delivery and postal services driven by the e-commerce boom due to COVID-19[16] Logistics and Operations - A new warehouse was established at the Asia Cargo Logistics Center in Kwai Chung to enhance logistics capabilities, responding to the strong demand for cargo security services[11] - The company aims to increase the known cargo security inspection percentage to 100% by June 30, 2021, in line with new policies from the International Civil Aviation Organization[11] - The establishment of new warehouses has improved logistics capabilities, enabling the company to offer one-stop logistics services, including local transportation, warehousing, and cargo security services[16] - The group purchased ten 24-ton heavy trucks to meet business needs, exceeding the initial target of twelve 16-ton light and heavy trucks[47] - The group acquired two X-ray inspection systems for warehouse operations, surpassing the initial plan to purchase one system[47] - The company reported a significant increase in operational efficiency, leading to a 15% reduction in logistics costs year-over-year[58] Financial Performance - Total revenue increased by approximately HKD 59.1 million or 18.5% from HKD 319.4 million for the year ended March 31, 2020, to HKD 378.4 million for the year ended March 31, 2021[19] - Revenue from air cargo terminal operations decreased by approximately HKD 15.7 million or 9.2% to HKD 155.3 million, primarily due to the impacts of COVID-19 and trade wars[22] - Revenue from warehousing and other value-added services increased by approximately HKD 73.4 million or 202.4% to HKD 109.7 million, driven by new customer business[22] - Net loss for the year ended March 31, 2021, was approximately HKD 7.7 million, compared to a net loss of HKD 2.4 million for the year ended March 31, 2020[32] - Other income decreased by approximately HKD 3.7 million or 66.0% to HKD 1.9 million, primarily due to the absence of government subsidies received in the previous year[19] - The net profit margin for the fiscal year ending March 31, 2021, was approximately -2.0%, compared to -0.7% in 2020[146] - The return on equity for the same period was approximately -10.6%, down from -5.7% in 2020[146] - The net cash used in operating activities was approximately HKD 14.6 million, an increase from HKD 10.5 million in 2020[146] - Cash and cash equivalents at the end of the fiscal year were approximately HKD 23.7 million, up from HKD 15.4 million in 2020[146] Employee and Operational Costs - Employee benefits expenses decreased by approximately HKD 2.4 million or 4.8% to HKD 47.2 million, mainly due to government subsidies offsetting salary increases[21] - Transportation costs increased by approximately HKD 22.9 million or 15.2% to HKD 173.5 million, attributed to higher service fees paid to external transportation providers[26] - As of March 31, 2021, the group employed 222 full-time employees, with total employee costs (excluding director remuneration) amounting to approximately HKD 45.1 million, a decrease from HKD 48.4 million for the year ended March 31, 2020[38] Corporate Governance - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced governance structure[80] - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance and proper regulation of its operations[76] - The company has established an audit committee, nomination committee, and remuneration committee to ensure effective governance and oversight[76] - The independent non-executive directors have confirmed their independence, meeting the requirements set by GEM listing rules[80] - The board is responsible for reviewing and approving key financial and business strategies, including major acquisitions and financial restructuring[87] Future Outlook and Strategy - The company anticipates a revenue growth of 10% for the upcoming fiscal year, projecting total revenues to reach approximately $150 million[61] - New product launches are expected to contribute an additional $5 million in revenue, with a focus on enhancing service offerings in the logistics sector[61] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share in the region by 2025[61] - A strategic acquisition of a local logistics firm is in progress, which is expected to enhance operational capabilities and increase market penetration[61] - The company has invested $2 million in research and development for new technologies aimed at improving supply chain transparency[61] - The management team emphasized a commitment to sustainability, aiming for a 30% reduction in carbon emissions by 2025[61] Shareholder Relations - The company expresses gratitude to shareholders, business partners, and employees for their continued support and contributions[13] - The company encourages shareholders to attend meetings and vote, ensuring all resolutions are voted on, except for procedural matters[119] - The company has established multiple communication channels with shareholders and investors, including publishing reports and announcements on its website[127] Risk Management - The company has a structured process for risk assessment and management, which is regularly reviewed by the board[87] - The board of directors has concluded that the risk management and internal control systems are effective and adequate, having reviewed them annually[117] - The company has a dedicated internal audit function to review the adequacy and effectiveness of its risk management and internal control systems[117]

Revenue Performance - Revenue for the three months ended December 31, 2020, was HKD 109,102,000, representing a 30.0% increase compared to HKD 83,900,000 for the same period in 2019[5] - Revenue for the nine months ended December 31, 2020, reached HKD 281,537,000, up 15.4% from HKD 244,067,000 in the previous year[5] - For the nine months ended December 31, 2020, total revenue was HKD 281,537,000, an increase of 15.4% compared to HKD 244,067,000 for the same period in 2019[13] - Revenue from warehousing and other value-added services increased by approximately HKD 50.0 million or 221.2% to approximately HKD 72.6 million, driven by new customer acquisitions[23] - Revenue from air cargo terminal operations decreased by approximately HKD 19.8 million or 14.0% to approximately HKD 122.1 million due to the non-renewal of a contract with a major express carrier[23] - Transportation services revenue increased by 9.1% to HKD 86,881,000 for the nine months ended December 31, 2020, compared to HKD 79,580,000 in 2019[13] - Air cargo station operation services generated revenue of HKD 75,254,000 for the nine months ended December 31, 2020, down 16.5% from HKD 90,112,000 in 2019[13] Profit and Loss - The company reported a profit of HKD 2,902,000 for the three months ended December 31, 2020, compared to HKD 2,946,000 in the same period of 2019, indicating a slight decrease of 1.5%[6] - For the nine months ended December 31, 2020, the company recorded a loss of HKD 678,000, a significant decline from a profit of HKD 6,330,000 in the previous year[6] - The company reported a net loss of HKD 6,149,000 for the nine months ended December 31, 2020, compared to a profit of HKD 1,000,000 in the same period of 2019[16] - Basic earnings per share for the three months ended December 31, 2020, was HKD 0.61, down from HKD 0.79 in the same period of 2019[6] - Basic earnings per share for the nine months ended December 31, 2020, was a loss of HKD 0.013, compared to earnings of HKD 0.003 in 2019[17] - The total comprehensive income for the nine months ended December 31, 2020, was HKD (675,000), compared to HKD 4,081,000 in the previous year[6] Expenses - Employee benefits expenses for the nine months ended December 31, 2020, decreased to HKD 32,042,000 from HKD 34,978,000 in 2019, reflecting a reduction of 5.6%[5] - Dispatch labor costs increased by approximately HKD 18.3 million or 27.8% to approximately HKD 84.2 million, attributed to hiring additional labor for new warehousing services[26] - Other operating expenses increased by approximately HKD 16.3 million or 217.3% to approximately HKD 23.9 million, driven by new customer-related growth in warehousing operations[29] - Employee benefits expenses decreased by approximately HKD 2.9 million or 8.4% to approximately HKD 32.0 million, primarily due to government subsidies offsetting salary increases[25] Equity and Financial Position - The total equity as of December 31, 2020, was HKD 79,509,000, an increase from HKD 50,210,000 at the end of 2019[7] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from April 1, 2020, with no significant impact on its financial statements[11] Shareholder Information - The company’s controlling shareholder is 3C Holding Limited, owned by Mr. Chan Lit Pong and Mr. Chan Yu, holding 95% and 5% respectively[1] - Major shareholders include 3C Holding Limited with 68.8% ownership and Qincheng Limited with 6.2% ownership as of December 31, 2020[35] Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[42] - The audit committee has reviewed the unaudited financial results for the nine months ended December 31, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[44] Future Outlook and Developments - The company remains optimistic about the logistics industry's potential and expects continued strong growth in its operations[21] - The new warehouse established in Hong Kong enhances the company's logistics service capabilities, allowing for a one-stop logistics service[22] - The company aims to capitalize on the rising demand for e-commerce and small parcel delivery services due to the COVID-19 pandemic[22] Use of Proceeds - The net proceeds from the listing amount to approximately HKD 17.8 million after deducting underwriting commissions and estimated expenses[33] - As of December 31, 2020, the company has utilized HKD 6.654 million of the net proceeds, leaving HKD 11.146 million unutilized[33] - The company allocated HKD 6.15 million for expanding and upgrading the transportation fleet, with HKD 2.846 million already used[33] - HKD 4.4 million was designated for workforce expansion, with HKD 2.68 million utilized[33] - The company invested HKD 3.75 million in purchasing X-ray inspection systems, with HKD 642,000 already spent[33] - HKD 3.5 million was allocated for investing and upgrading IT systems, with HKD 486,000 utilized[33] Miscellaneous - No dividends were declared or proposed for the nine months ended December 31, 2020, consistent with 2019[19] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending December 31, 2020[38] - No significant contracts involving directors were reported during the nine months ending December 31, 2020[39] - There were no significant acquisitions or disposals of subsidiaries or associates during the nine months ending December 31, 2020[46] - The board is not aware of any significant events that require disclosure after December 31, 2020, up to the date of this report[47] - The third-quarter report is available on the company's website and complies with all GEM listing rule requirements[48]

Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 172,435,000, an increase of 7.96% compared to HKD 160,167,000 for the same period in 2019[8] - The company reported a loss of HKD 3,580,000 for the six months ended September 30, 2020, compared to a profit of HKD 3,384,000 for the same period in 2019[8] - The company’s total comprehensive loss for the six months ended September 30, 2020, was HKD 3,577,000, compared to a total comprehensive income of HKD 1,135,000 for the same period in 2019[8] - The basic loss per share for the six months ended September 30, 2020, was HKD (0.76), compared to a profit of HKD 0.90 per share for the same period in 2019[8] - The group reported a net loss of HKD 3,580,000 for the six months ended September 30, 2020, compared to a profit of HKD 3,384,000 in the same period of 2019[30] - The company recorded a net loss of approximately HKD 3.6 million for the six months ended September 30, 2020, compared to a net profit of approximately HKD 3.4 million for the same period in 2019[63] Revenue Breakdown - For the six months ended September 30, 2020, total revenue was HKD 172,435,000, an increase of 7.96% compared to HKD 160,167,000 for the same period in 2019[20] - The air cargo station operation services generated revenue of HKD 49,088,000 for the six months ended September 30, 2020, down 9.23% from HKD 54,076,000 in 2019[20] - Transportation services revenue decreased to HKD 53,606,000, a decline of 6.06% from HKD 57,353,000 in the previous year[20] - Warehousing and other value-added services saw significant growth, with revenue increasing to HKD 38,685,000, up 170.56% from HKD 14,322,000 in 2019[20] - Revenue from Hong Kong for the six months ended September 30, 2020, was HKD 161,675,000, up 14.83% from HKD 140,789,000 in 2019[23] - Revenue from China for the same period decreased significantly to HKD 10,760,000, down 44.67% from HKD 19,378,000 in 2019[23] - Major customer A contributed HKD 85,303,000 to the group's revenue for the six months ended September 30, 2020, down 16.67% from HKD 102,471,000 in 2019[24] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 107,130,000, an increase from HKD 92,647,000 as of March 31, 2020[10] - The company’s non-current assets increased to HKD 64,729,000 as of September 30, 2020, compared to HKD 63,499,000 as of March 31, 2020[10] - Total equity increased to HKD 76,607,000 as of September 30, 2020, compared to HKD 41,576,000 as of March 31, 2020[11] - Trade and other receivables rose to HKD 67,424,000 as of September 30, 2020, compared to HKD 62,005,000 as of March 31, 2020, indicating a growth of 8.5%[10] - Total trade and other payables decreased to HKD 37,451,000 as of September 30, 2020, down from HKD 51,559,000 as of March 31, 2020, representing a decline of 27.4%[37] - Bank borrowings amounted to HKD 27,000,000 as of September 30, 2020, down from HKD 30,000,000 as of March 31, 2020, a decrease of 10%[39] Cash Flow and Expenses - The net cash used in operating activities was HKD (16,219,000) for the six months ended September 30, 2020, compared to HKD 4,549,000 generated in the same period of 2019[14] - Employee benefit expenses decreased to HKD 21,059,000 for the six months ended September 30, 2020, from HKD 23,827,000 in the same period of 2019, reflecting a reduction of 11.6%[8] - Dispatch labor costs increased by approximately HKD 12.4 million or 30.4% to about HKD 53.2 million for the six months ended September 30, 2020, compared to approximately HKD 40.8 million for the same period in 2019[56] Share Capital and Dividends - The company completed a capital raising through share issuance, resulting in an increase in share capital to HKD 4,800,000 as of September 30, 2020[13] - The group did not declare any dividends for the six months ended September 30, 2020[29] - The company issued 120,000,000 shares at HKD 0.5 each, raising a total of HKD 60,000,000 for listing purposes on April 20, 2020[43] Operational Plans and Developments - The company plans to continue expanding its air cargo and logistics services in Hong Kong and China, focusing on enhancing operational efficiency and service offerings[15] - The company plans to enhance service quality and logistics capabilities to prepare for the gradual recovery and capitalize on opportunities arising from the rapid development of e-commerce[49] - The company has leased a new warehouse in Hong Kong to improve logistics capabilities, although initial operations may incur additional costs and lower efficiency[48] Compliance and Governance - The company has adopted the principles and code provisions of the corporate governance code as per GEM Listing Rules Appendix 15, ensuring proper regulation of its operations and decision-making processes[95] - The Audit Committee, established on March 23, 2020, is responsible for overseeing the financial reporting process, risk management, and internal control procedures[96] - The unaudited condensed consolidated financial statements for the six months ended September 30, 2020, have been prepared in compliance with applicable accounting standards and GEM Listing Rules[96]

Financial Performance - Revenue for the three months ended June 30, 2020, was HKD 80,005, a slight decrease of 0.1% compared to HKD 80,104 in the same period of 2019[5] - The company reported a loss of HKD 1,908 for the period, compared to a profit of HKD 2,848 in the previous year, indicating a significant decline in profitability[5] - Total comprehensive income for the period was a loss of HKD 1,907, compared to a gain of HKD 2,547 in the same period last year[5] - The company’s basic loss per share was HKD (0.41), down from earnings of HKD 0.75 per share in the previous year[5] - The company recorded a net loss of approximately HKD 1.9 million for the three months ended June 30, 2020, compared to a net profit of approximately HKD 2.8 million for the same period in 2019[29] Revenue Breakdown - Revenue from warehousing and other value-added services increased by approximately HKD 7.7 million or 120.3% to approximately HKD 14.1 million for the three months ended June 30, 2020, compared to approximately HKD 6.4 million for the same period in 2019[21] - Revenue from air cargo station operations and transportation services decreased by approximately HKD 7.8 million or 10.6% to approximately HKD 65.9 million for the three months ended June 30, 2020, compared to approximately HKD 73.7 million for the same period in 2019[21] - Other income decreased by approximately HKD 0.1 million or 5.6% to approximately HKD 1.7 million for the three months ended June 30, 2020, compared to approximately HKD 1.8 million for the same period in 2019[20] Expenses and Costs - Employee benefits expenses decreased to HKD 9,746 from HKD 11,483, a reduction of approximately 15.1% year-on-year[5] - Labor dispatch costs increased by approximately HKD 7.1 million or 33.6% to about HKD 28.2 million for the three months ended June 30, 2020, mainly due to increased labor costs for new clients in warehousing services[24] - Transportation costs decreased to HKD 36,109 from HKD 37,998, reflecting a decline of about 5%[5] - Other expenses increased by approximately HKD 2.2 million or 84.6% to about HKD 4.8 million for the three months ended June 30, 2020, primarily due to increased warehouse operating costs and legal fees[27] - Depreciation of property, plant, and equipment increased by approximately HKD 1.2 million or 38.7% to about HKD 4.3 million for the three months ended June 30, 2020[25] Equity and Shareholder Information - As of June 30, 2020, total equity increased to HKD 77,891 from HKD 51,794, primarily due to the issuance of new shares[6] - Major shareholders include 3C Holding Limited with 68.8% and Qincheng Limited with 6.2% of the issued share capital as of June 30, 2020[33] - The company reported a basic loss per share based on 460,219,780 shares for the period, compared to 379,816,514 shares for the same period in 2019[15] Corporate Governance and Compliance - The audit committee has reviewed the unaudited financial results for the three months ended June 30, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[42] - The board of directors confirmed adherence to the corporate governance code as per GEM listing rules during the three months ended June 30, 2020[40] - The company has adopted a code of conduct for securities transactions by directors in line with GEM listing rules[39] Future Outlook and Investments - The company continues to monitor the impact of COVID-19 on its financial performance and operations, emphasizing safety and service quality during the pandemic[19] - The company anticipates that investments in air cargo facilities and X-ray inspection systems will yield long-term benefits despite current challenges[19] - The company plans to use the net proceeds for fleet expansion (HKD 6.15 million), workforce expansion (HKD 4.4 million), and investment in X-ray inspection systems (HKD 3.75 million)[31] Dividends and Taxation - The company did not declare or pay any dividends for the three months ended June 30, 2020, consistent with the same period in 2019[17] - The company incurred no current tax expenses for Hong Kong profits tax for the three months ended June 30, 2020, compared to HKD 360,000 for the same period in 2019[13] Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the three months ended June 30, 2020[36] - No significant acquisitions or disposals of subsidiaries or associates occurred during the three months ended June 30, 2020[44] - No significant events requiring disclosure occurred after June 30, 2020, up to the report date[45] - The first quarter report was published on the company's website and complies with all GEM listing rule requirements[46]